[DIP-3] Quorum Proposal

Proposals DIP (DAO Improvement)
1

Overview

The ssv.network DAO currently requires 5% of circulating supply to participate in a vote to reach quorum. This is a proposal to change the quorum requirement to 2.5% of total supply and specify quorum contingencies.

Motivation

The current quorum requirement is 5% of circulating supply. The total amount of SSV required to pass a vote is currently around 373,000; calculation here.

The circulating supply calculation takes into account SSV locked in the Token Upgrade Smart Contract, tokens held as part of the DAO Treasury, and other tokens that cannot be used for voting. This formula is complicated and difficult to verify.

Changing the quorum to 2.5% of total supply makes this calculation easier to understand and verify by the community. This calculation can also be implemented directly on Snapshot making it easier to understand the progress of DAO votes.

“Total supply” is given by the totalSupply function in the SSV token contract:

0x9D65fF81a3c488d585bBfb0Bfe3c7707c7917f54

Amount divided by 10^18 to account for decimal point precision.

This would put the quorum at around 277K SSV at the time of submitting this proposal.

The quorum may be changed by DAO vote at any time if this quorum is deemed insufficient.

Mechanism

  • New quorum requirement of 2.5% of total supply takes effect immediately after this proposal has passed.

Reasons for

  • Makes it easier for DAO participants to understand and verify the quorum.
  • A simple quorum calculation can be implemented directly on Snapshot.
  • Easier for community and multisig signers to verify that quorum was reached.

Reasons against

  • The quorum will not dynamically change when tokens are withdrawn from the conversion contract or DAO treasury.
  • Any future minting of tokens will raise the absolute number of tokens required to reach the quorum.
3 Likes
2

The idea is to keep quorum as simple as possible so we don’t have to rely on an advanced calculation made on the community dashboard. Quorum should be easy to understand and easy to calculate so the community can come to consensus among itself and not have to rely on a single point of failure.

Quorum is important! If you have any thoughts or ideas on how to improve this proposal please comment here! :pray:

1 Like
3

I don’t see the real benefit to decrease the quorum here. As I see, the total amount required to pass a vote is a fixed number since the total supply is fixed so no big difference between 3% or 5%.

1 Like
4

The circulating supply isn’t a fixed number; thus, the minimum quorum for every vote changes. Even the definition of circulating supply could be challenged. Overall, it created a lot of friction in the past.

I fully support this proposal because it is much simpler to calculate and allows everyone to verify the number on-chain. Since the change leads to a minimum required quorum that is close to today’s min. quorum, we still hold on to our high voting standards.

1 Like
5

got it. It makes sense to me now.

1 Like
6

:warning: Important update

The original post has been updated after intense discussion among core contributors.
The quorum requirement based on totalSupply was lowered to 2.5% instead of 3%. With this change, the quorum settles at 277K SSV.

Lowering the quorum by 0.5% reduces the need for intense voting campaigns while still requiring major participation. Overall, this should reduce the operational overhead while protecting us from spam votes and most whale attacks since, at the current market price of SSV ($17.5), an attacker would need around ~$5M in SSV. While this is not impossible, it would require to put substantial economic value at stake.

Please express your opinions and concerns.

2 Likes
7

I think it is important to have a grace period for reaching quorum. This would allow for some time for tokens to be deposited into the voting contract before the vote fails.

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This proposal is for changing the quorum on the DAO’s Snapshot voting page, community members don’t need to lock tokens into a voting contract before voting.

We should keep your comment in mind if the DAO decides to move to on-chain voting :+1: Let me know if I misundersood

9

:white_check_mark: The proposal was voted ‘Yes’ by the community and reached the required quorum.

https://snapshot.org/#/mainnet.ssvnetwork.eth/proposal/0x2f25cc051300da5c17f9c7728b15e1ea3e66de4f5a50c5604ec196531cb9d1dc

1 Like